I stated before, I value stocks by comparison with corporate bond yield where the stock yield is adjusted for debt. Fair valued is a price range that stretches from a value that just considers current yield to a value that considers extrapolated yield in 5 years. I buy undervalued stocks which have a price less than the fair valued range.
If I ever get to the point where no stocks are undervalued, I will buy a corporate bond index fund. I don't believe in sitting on the sidelines with cash, so an alternative investment is what must be used as a buy criteria. Currently, there are still many stocks available that are undervalued by this criteria.
If I ever get to the point where no stocks are undervalued, I will buy a corporate bond index fund. I don't believe in sitting on the sidelines with cash, so an alternative investment is what must be used as a buy criteria. Currently, there are still many stocks available that are undervalued by this criteria.